Illustrate modern method of measurements, Financial Management

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Q. Illustrate Modern Method of Measurements?

Holding Period Yield: The holding period yield is one of the modern techniques on Measuring return. It serves two purposes:

a) It measures the total return per rupee of the original investment.

b) Through this method, comparisons can be drawn of any asset's expected return.

The holding period yield can be used for any assets. For example, return from saving accounts, stocks money, real estate and bonds can be compared through this measure. The formula for the holding period yield is: Income payment received during the year in rupees + Capital change for the period in rupees Price in rupees of in original investment at the beginning of the period

Bonds Holding Period Yields

The holding period yields for bonds are measured in the following way: BHPY= Income payment during Period t + Change in price during period Price at the beginning of the period of  BHPY or Bond Holding Period Yields = It + P. Pt Contributing to risk are price and interest. All investments are risky, whether in stock or capital 1)1 a market or banking and financial sector, real estate, bullion gold etc. the degree of risk, however, varies on the basis of features of assets, investment instrument,. mode of investment or issuer of security etc.


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